- NSE Indices has launched the Nifty500 Ahimsa Index, a thematic benchmark aimed at investors who prioritize ethical and animal-welfare considerations in their equity portfolios.
- The index comprises 326 companies selected from the Nifty 500 universe, screened based on their products, services, and business activities under the Ahimsa Investment Movement (AIM) framework.
- Only companies classified in the Green category under the AIM framework are eligible for inclusion, while those in the Orange and Red categories are excluded.
- The index is weighted according to the free-float market capitalisation of its constituents, with top holdings including Bharti Airtel, Infosys, and Tata Consultancy Services.
- The Nifty500 Ahimsa Index is not directly investible, but its significance will depend on whether asset managers use it to launch exchange-traded funds (ETFs) and other passive investment products.
- The launch of the Nifty500 Ahimsa Index reflects the growing maturity of India’s passive investing ecosystem, with investors seeking portfolios that align with specific values.
The Nifty500 Ahimsa Index, launched by NSE Indices on July 10, aims to provide a thematic investment option for those prioritizing ethical and animal welfare considerations.1
"The launch of the Nifty500 Ahimsa Index reflects the growing maturity of India’s passive investing ecosystem," stated Divam Sharma, Co-founder and CEO of Green Portfolio.7
The index includes 326 companies from the Nifty 500 universe, screened under the Ahimsa Investment Movement (AIM) framework developed with the Ahimsagain Foundation.23
Only companies classified in the green category, which signifies full compliance with animal-cruelty-free criteria, are included.4
"Instead of manually evaluating each company’s business practices, investors now have access to an index built on the AIM framework," said Krishna Patwari, Founder and Managing Director of Wealth Wisdom India.
The index notably excludes firms involved in alcohol, tobacco, and animal cruelty, including most Reliance Group companies and pharmaceutical firms using animal testing.
"The Nifty500 Ahimsa Index is a significant step towards broadening India’s ESG and ethical investing landscape," remarked Narinder Wadhwa, Managing Director and CEO of SKI Capital Services.
The index is not directly investible but is expected to serve as a benchmark for asset managers to create ethical investment products like ETFs and index funds.
"It is good to see such new sustainable themes launched," noted a fund manager, emphasizing the potential for growth in ethical investing in India.
The index's top holdings include Bharti Airtel, Infosys, and Tata Consultancy Services, weighted by free-float market capitalization.5
"ESG investing made ethics part of finance long ago... India has now decided to ask an entirely different question," Kotak Neo reported, highlighting the unique focus on non-violence in investment criteria.
“The index screens over 1,100 listed companies under the Ahimsa Investment Movement framework, classifying them into green, orange and red bands based on animal cruelty criteria. Notable exclusions include all commercial banks, pharmaceutical companies using animal testing, and dairy, meat, and leather firms, reflecting a strict adherence to non-violence.”
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